Social Investment Scheme
WB okays additional $8m interest-free credit
Unb, Dhaka
The World Bank approved an additional finance worth 8.0million US dollar in interest-free credit to sustain and expand the activities under the Social Investment Program Project (SIPP) in Bangladesh. A WB release yesterday said the SIPP is a community-driven scheme supporting village-level infrastructure development, social assistance and income-generating activities. The additional financing for the SIPP, which was approved by the World Bank on March 18, 2003, will continue to support development of sustainable and effective institutional arrangements at the local level, through which communities are empowered to address their own basic needs. It was mentioned in the World Bank release that as of March 15 this year, about 2 million people in 950 villages had benefited and about 1,400 community-managed subprojects had been implemented, ranging from rural roads to schools, to tube-wells, under the programme. "The project has been successful in demonstrating the capacity of rural villagers to prioritise needs and manage resources, empowering them to play an active role in shaping poverty-reduction efforts at the local level," said Xian Zhu, World Bank's Country Director for Bangladesh. "This additional financing will be critical to build on existing gains and enhance the developmental impact of this well-performing project," he added. The additional financing will allow for activities in villages presently served by the project to be deepened, with a particular focus on strengthening community-driven institutions of the poor, building upon both the existing implementation capacity and results to date. It will also enhance the focus on inclusion of the youth and respond to community demands for increased support for economic activities and employment opportunities. Project activities will also be extended into a limited number of villages in four additional districts. "The project gives these communities a chance to build their confidence and show what they can achieve," said Meena Munshi, World Bank Senior Economist and project team leader. The credit from the International Development Association (IDA), World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period. It carries a service charge of 0.75 percent.
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